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Human Settlements Development Bank close to being finalised 29 April 2021 - 14:32 In 2019 President Cyril Ramaphosa announced that the government would establish the Human Settlements Development Bank, which aims to expedite the delivery of houses in the country. The state set a target of building 500,000 houses by 2024. File photo. Image: SINO MAJANGAZA
Deputy minister of human settlements, water and sanitation Pam Tshwete on Thursday told parliament that the establishment of the Human Settlements Development Bank (HSDB) was at an advanced stage.
“The bill for the bank has been drafted. It has been sent to the state law advisers for scrutiny and it will be presented to the cabinet in May. It will then go for public comments, which is important, it cannot be finalised without going for public comment,” said Tshwete.
The government’s loan scheme of R200-billion, which is intended to help small businesses through the Covid-19 pandemic, comes to an end on 11 April.
The scheme was introduced in May 2020 by commercial banks, the National Treasury, SA Reserve Bank, and Banking Association SA (Basa) as a centrepiece in President Cyril Rampahosa’s plan to shore up the economy during the worst recession since the Great Depression. And the performance of the loan scheme has, so far, been dismal.
With R18.01-billion in loans advanced to small and medium-sized businesses as of 27 February, the scheme might fail to reach its 10% loan disbursement target (currently at 9%) when it comes to an end. By then, commercial banks will stop granting loans under the scheme and probably start arranging repayment schedules with business owners.